28% from the following day, for higher rate taxpayers only. There were no changes to duties on fuel (petrol and diesel), alcohol, and tobacco. Osborne cancelled the increase that Labour had planned on cider. Taxes Spending Osborne announced further reductions in public expenditure to reach £17 billion by 2014/15. The Budget did not make any further reductions in overall capital expenditure, but projects will be prioritised and reassessed in the autumn spending review. Public sector workers face a two-year pay freeze, although 1.7 million of those earning less than £21,000 will get a flat pay-rise worth £250 in both years. The government will accelerate the increase in state pension age to 66. From 2011, state benefits other than the state pension and pension credit will be pegged to consumer prices rather than retail prices. The same will apply to public service pensions. These measures were expected to reduce public spending by over £6 billion p.a. within the five-year term of the Parliament. Child benefit was frozen for three years. Tax credits will provide an additional £150 a year for the poorest families, but with withdrawal rates increased by 2% to 41%, reducing tax credits at higher incomes. Housing Benefit reforms will introduce a maximum payment of £400 per week. This would save £1.8bn p.a. A new medical assessment for Disability Living Allowance will be introduced from 2013. Heavy Industrial Plant Grants will rise from 10% to 11% of the purchase price for small business. The Queen's Civil List payment remains frozen at £7.9 million. Spending Prior announcements and discussions In the light of the change in ruling party, the recession, the novelty of coalition government and the strain which the painful decisions would put on the coalition, this Budget generated a high degree of public interest and discussion in advance. The government's top priority is to reduce government borrowing from its peacetime record highs. Prime Minister David Cameron said the previous Labour government had refused to publish its own projections showing the escalating cost of interest. He argued that taxes should be spent on public services rather than paying interest on the national debt. The changes to the UK Budget were expected to focus on cuts to government spending rather than increases in taxation. The Chancellor stated early on that health and international aid expenditure would be protected. On 24 May, he then outlined £6.2 billion of spending cuts. The